British politics is a tale of two leaders, Prime Minister Rishi Sunak and opposition leader Keir Starmer. Or perhaps three leaders, although the third is the joker in the pack and we can leave him until later.
Mr Starmer is guiding the Labour party to what he hopes will be a historic victory in the general election predicted for the end of 2024. Things are (mostly) looking good for Labour. They are significantly ahead in opinion polls, and if you trust those polls, so far ahead of the real election then Labour maybe on course for a landslide.
Two recent by-election victories in supposedly “safe” Conservative seats have increased optimism in the party, despite a row about a Labour candidate making unfortunate remarks about Israel. It led Mr Starmer to abandon that candidate, although his response was criticised as being too slow.
Mr Starmer, therefore, remains cautious about the supposed “inevitability” of becoming prime minister. His team remembers the bitter moment in 1992 when Labour was overconfident of winning power after 13 years of the Conservatives in government – and blew it. It took the party another five years to enter government under Tony Blair.
The lesson now drummed into Labour campaigners is that high expectations and positive polling can lead to overconfidence and taking the electorate for granted. Mr Starmer reminds his troops that the only poll that matters has not happened yet. This “safety first” approach means that Mr Starmer points out mistakes and divisions within the Conservative party while being cautious – some claim unambitious – about what Labour would actually do in power.
Yet Mr Starmer’s problems are relatively minor compared to the tale of woe that is the Conservative party. Or parties. As we have noted on these pages before, one backbench MP talks of the Conservative party as “five families”, leading to comparisons with the rivalries between the clans of the New York mafia rather than the unity of a democratically elected government.
Mr Sunak, by all accounts, appears intelligent and decent. But he also happens to be a multi-millionaire married into one of the world’s richest families and he often awkwardly fails to connect with the British public. He is not much liked, according to pollsters, even by his own party supporters. On the plus side, Mr Sunak at least does not have a track record of lying and scandals like Boris Johnson. Nor did he pursue the blinkered and disastrous politics of his immediate predecessor Liz Truss.
Nevertheless, some of Mr Sunak’s appointments are far from successful. Chief Secretary to the Treasury Laura Trott, for example, was exposed on a BBC Radio interview as someone with – to be polite – a limited grasp of economics. In Mr Sunak’s defence, it could be said that the problem in the government in 2024 is not the leader of the Conservative party. It’s the Conservative party itself.
Those “five families” are constantly fighting a series of battles to find the next leader when – and most of them appear to think it really is “when” and not “if” – they perform catastrophically in the general election and lose power for many years. Numerous Conservative MPs – at the latest count more than 50 – smell defeat and have decided that they will not stand again in the next election. Others are jockeying to run as Mr Sunak’s successor or at least plotting to join the winning faction within the party after the election is – as they seem to believe – lost.
And that brings us to the joker in the pack, Nigel Farage. He will go down as a historical figure in bringing Brexit to Britain, even if he seems to accept that the project as implemented has been a disappointment. Others call Brexit a failure and a self-inflicted disaster.
Mr Farage has also been a key player in more political parties than usually seems healthy for someone who seeks power. He was the leader of the UK Independence Party, then the Brexit Party, and is now part of something called Reform, which acts as an irritant or gadfly on the Conservative political right.
The 'safety first' approach means that Starmer points out mistakes and divisions within the Conservative party while being cautious
Mr Farage says Labour will win the next election and claims Conservative members would vote for Mr Farage himself as leader of the party if they could dump Mr Sunak. Perhaps. Since Mr Farage is not (as far as we know) a Conservative party member, that would be remarkable.
Mr Sunak’s dilemma, therefore, is whether to move the party further to the right, to try to mop up the Farage-Reform vote and see off that threat, or move the party to the political centre, which is – of course – where most of the votes are, but also where Labour holds much more of the ground. Mr Sunak appears to be wobbling between these two difficult choices.
The sad thing for all of us is that at a time when the UK demands leadership, when so many things in public life and society are broken, the Prime Minister appears to be twisting in the prevailing winds. You may feel sorry for Mr Sunak. I am far more sorry for the rest of us, as we are forced to witness the dying embers of a government without a spark of life.
MOUNTAINHEAD REVIEW
Starring: Ramy Youssef, Steve Carell, Jason Schwartzman
Director: Jesse Armstrong
Rating: 3.5/5
Ferrari 12Cilindri specs
Engine: naturally aspirated 6.5-liter V12
Power: 819hp
Torque: 678Nm at 7,250rpm
Price: From Dh1,700,000
Available: Now
Tips on buying property during a pandemic
Islay Robinson, group chief executive of mortgage broker Enness Global, offers his advice on buying property in today's market.
While many have been quick to call a market collapse, this simply isn’t what we’re seeing on the ground. Many pockets of the global property market, including London and the UAE, continue to be compelling locations to invest in real estate.
While an air of uncertainty remains, the outlook is far better than anyone could have predicted. However, it is still important to consider the wider threat posed by Covid-19 when buying bricks and mortar.
Anything with outside space, gardens and private entrances is a must and these property features will see your investment keep its value should the pandemic drag on. In contrast, flats and particularly high-rise developments are falling in popularity and investors should avoid them at all costs.
Attractive investment property can be hard to find amid strong demand and heightened buyer activity. When you do find one, be prepared to move hard and fast to secure it. If you have your finances in order, this shouldn’t be an issue.
Lenders continue to lend and rates remain at an all-time low, so utilise this. There is no point in tying up cash when you can keep this liquidity to maximise other opportunities.
Keep your head and, as always when investing, take the long-term view. External factors such as coronavirus or Brexit will present challenges in the short-term, but the long-term outlook remains strong.
Finally, keep an eye on your currency. Whenever currency fluctuations favour foreign buyers, you can bet that demand will increase, as they act to secure what is essentially a discounted property.
How to watch Ireland v Pakistan in UAE
When: The one-off Test starts on Friday, May 11
What time: Each day’s play is scheduled to start at 2pm UAE time.
TV: The match will be broadcast on OSN Sports Cricket HD. Subscribers to the channel can also stream the action live on OSN Play.
Dates for the diary
To mark Bodytree’s 10th anniversary, the coming season will be filled with celebratory activities:
- September 21 Anyone interested in becoming a certified yoga instructor can sign up for a 250-hour course in Yoga Teacher Training with Jacquelene Sadek. It begins on September 21 and will take place over the course of six weekends.
- October 18 to 21 International yoga instructor, Yogi Nora, will be visiting Bodytree and offering classes.
- October 26 to November 4 International pilates instructor Courtney Miller will be on hand at the studio, offering classes.
- November 9 Bodytree is hosting a party to celebrate turning 10, and everyone is invited. Expect a day full of free classes on the grounds of the studio.
- December 11 Yogeswari, an advanced certified Jivamukti teacher, will be visiting the studio.
- February 2, 2018 Bodytree will host its 4th annual yoga market.
Anghami
Started: December 2011
Co-founders: Elie Habib, Eddy Maroun
Based: Beirut and Dubai
Sector: Entertainment
Size: 85 employees
Stage: Series C
Investors: MEVP, du, Mobily, MBC, Samena Capital
UAE currency: the story behind the money in your pockets
Karwaan
Producer: Ronnie Screwvala
Director: Akarsh Khurana
Starring: Irrfan Khan, Dulquer Salmaan, Mithila Palkar
Rating: 4/5
The specs: 2018 Mercedes-Benz E 300 Cabriolet
Price, base / as tested: Dh275,250 / Dh328,465
Engine: 2.0-litre four-cylinder
Power: 245hp @ 5,500rpm
Torque: 370Nm @ 1,300rpm
Transmission: Nine-speed automatic
Fuel consumption, combined: 7.0L / 100km
MATCH INFO
First Test at Barbados
West Indies won by 381 runs
Second Test at Antigua
West Indies won by 10 wickets
Third Test at St Lucia
February 9-13
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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”